Crypto Currency News
Ethereum Classic

Terra will allocate $ 139 million in DeFi projects to improve UST use cases

The multi-sector blockchain protocol Terra (LUNA) has announced a proposal to allocate $ 139 million to five different DeFi projects in Ethereum, Solana and Polygon to improve the use cases of UST.

However, the proposal must be approved by the Terra community through a vote of governance participants, which is likely to take place at a later date.

Terra as the dominant crypto player

The details of how UST and $ 139 worth of LUNA are used on different DeFi platforms are included in the document entitled: UST Goes Interchain: Degen Strats Part Three.

As per the proposal, Terra has identified a few partner projects where it intends to deposit up to $ 50 million to aid the stability of these protocols. Through this move, Terra said it would like to bring UST use cases into Ethereum DeFi.

These intentions are in line with previous comments by Terra founder Do Kwon, in which he stated that he would like to see UST as the dominant stable in crypto space.

Currently, TerraUSD (UST) ranks fourth on the list of the best stablecoins with a market capitalization of $ 10.44 billion. Tether USDT (78.44 billion USD), USD Coin USDC (43.2 billion USD), Binance USD (14.4 billion USD) are in front of Terra USD.

So Terra wants to use the 139 million US dollars.

Tokemak (Ethereum)

Tokemak, a DeFi liquidity provider and market maker, is among the new DeFi projects where Terra plans to deposit $ 139 in UST.

It intends to provide $ 50 million in UST for a minimum of six months to support UST Pair Reactor. Apart from the regular TOKE rewards, the asset can also be used by the Terra Community to vote in the LUNA Token Reactor.

Rari backup (Ethereum)

The next project in terms of the scope of the UST implementation is Rari Fuse, an unlicensed loan and credit platform that will receive UST funding of $ 20 million over six months. UST aims to become the cheapest stall available to borrow on Fuse.

The yield aggregator Convex Finance will receive $ 18 million in UST for six months. Terra will offer LUNA incentives to liquidity providers who use UST in different convex pools.

OlympusDAO (Ethereum, Solana, Polygon)

The next UST-funded project is Olympus, an OHM-based decentralized reserve currency protocol. The total proposed use of funds is $ 1.425 million in UST. OlympusDAO is already working with Terra and will release an encapsulated version of OHM, gOHM, on its blockchain.

A key aspect of this partnership is the fact that Olympus will bring OlympusPro to Terra protocols. It also involves the Terra community to work with Olympus DAO.

InvictusDAO (Solana)

As a decentralized reserve currency on the Solana network, Invictus is an offshoot of Olympus, but has emerged as a promising actor in the implementation of its Treasury Department. Terra plans to increase its presence on Solana by creating IN / UST bonds with a contribution of $ 250,000. Frax Finance (FRAX) will provide $ 250,000 in Frax to offset Terra’s contribution.

SPECIAL OFFER (sponsored)
Binance Free $ 100 (Exclusive): Use this link to register and receive $ 100 free and 10% off first month Binance Futures fees (terms and conditions).

PrimeXBT Special Offer: Use this link to register and enter the POTATO50 code to get 25% off trading fees.

Comments are closed.